July 7, 2017
The Englewood, CO-based parent company of QVC is acquiring St. Petersburg, FL-based Home Shopping Network for roughly $2.6 billion in stock. The move is being driven by a continued shift towards online shopping.
The pairing aligns with both companies’ efforts to freshen up product lineups to appeal to younger demographics and boost more mobile shopping. QVC and HSN have held strong positions in the home shopping on TV sector, though Amazon has cut into sales.
QVC is stronger in fashion and beauty, while HSN tends to do well in areas like electronics, fitness and health.
By combining QVC and HSN, Liberty Interactive Corp., which owns QVC and already owned 38% of HSN, hopes to gain the scale required to take on more established online competitors. That strategy may include tapping into Zulily, which QVC bought in 2015, to drive younger customers to both brands.
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